UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION

In the Matter of

THE QUIGLEY CORPORATION, corporation.

DOCKET NO.

COMPLAINT

The Federal Trade Commission, having reason to believe that The Quigley Corporation, a corporation ("respondent"), has violated the provisions of the Federal Trade Commission Act, and it appearing to the Commission that this proceeding is in the public interest, alleges:

1. Respondent The Quigley Corporation ("Quigley") is a Nevada corporation with its principal office or place of business at 10 South Clinton Street, Doylestown, PA 18901.

2. Respondent has manufactured, advertised, labeled, offered for sale, sold, and distributed dietary supplement products to the public, including Cold-Eezer Plus Zinc Gluconate Lozenges and Cold-Eeze Zinc Lozenges (hereinafter, collectively, "Cold-Eeze"), and Kids-Eeze Bubble Gum ("Kids-Eeze"). These products are "foods" and/or "drugs" within the meaning of Sections 12 and 15 of the Federal Trade Commission Act.

3. The acts and practices of respondent alleged in this complaint have been in or affecting commerce, as "commerce" is defined in Section 4 of the Federal Trade Commission Act.

4. Respondent has disseminated or has caused to be disseminated advertisements for Cold-Eeze, including but not limited to the attached Exhibits A through C, transcripts of television advertisements that appeared on QVC or Q2, home shopping cable channels run by QVC, Inc.; Exhibits D through E, advertisements that appeared on the Internet at www.quigleyco.com; and Exhibits F through H, advertisements that appeared on radio programs. These advertisements contain the following statements:

(a) C. Phillips: To have a strategy to help fight the common cold. The kids are in school. They are there right now.

. . .

C. Phillips: It's a breeding ground. Everything they touch -- if the child before had a cold and they touch that spot and they touch their noses, its off to the races.

. . .

C. Phillips: So, there's a couple of strategies. One is we can take one a day and try to see if you can beat the cold to what they call prophylactic or a preventive medicine.

Show Host: Excellent

C. Phillips: Try taking one a day. Or if the child comes home and you see that it's here . . . that they have symptoms, start treating the child. Take one every three hours. But everyone in the family should take a couple to prevent picking up that cold.

(Exhibit A, p. 2).

(b) Caller: I just wanted you to know I have a granddaughter that's 12 years old, and ever since birth when she gets a cold, it turns into bronchitis.

. . .

Caller: And so I tried these . . . and it eliminated the cold almost immediately.

C. Phillips: Well, that's really important because we have several customers we know through QVC and other places where they really can't afford to have their children even get a cold because what happens is this exacerbated condition appears.

Show Host: Sure.

C. Phillips: You get bronchitis, pneumonias. And here's an opportunity right in front of us to stop it right now.

Show Host: Right. Exactly.

(Exhibit A, p. 3).

(c) C. Phillips: The other thing is allergies.

Show Host: Yes.

C. Phillips: We have many, many people who have reported to us that their usual choice is to have antihistamines, which make them dopey --

Show Host: Sure.

C. Phillips: -- which make them incapable of functioning, some of them.

Show Host: Right.

C. Phillips: And we suggested they try it. So, we -- they tried it and they take one and they see how long it lasts. It does diminish the symptoms of allergies.

(Exhibit A, p. 4).

(d) Show Host: Children can absolutely take this. In fact, I've heard . . . people will wrap one of these in cheesecloth and let their toddler suck on it so they can get the benefits from it without actually risking choking or anything.

C. Phillips: Um-hum. Yes.

(Exhibit A, p. 6).

(e) Caller: And I was glad to hear you say something about taking one a day as a preventative. We've never tried that before.

C. Phillips: Yes. Well, now's the time to try it.

Show Host: Yep.

C. Phillips: This is -- this is a strategy that may pay off big-time because it does help block as you saw in the animation. If we can stop the viruses we pick up over the day, they will not have a chance to even start.

Show Host: Perfect.

C. Phillips: Therefore, it will preclude you getting the cold.

Caller: Yes.

C. Phillips: And it's a good strategy. We highly recommend people try that.

(Exhibit A, pp. 6-7)

(f) C. Phillips: Well not only that, but zinc is a critical, very important mineral that we all need. A lot of us are deficient in it. . . . So, not only are you preventing a cold, but you're getting that zinc which has been proven many times to have a positive effect on many conditions of the body.

Show Host: So you're getting even healthier.

C. Phillips: Absolutely.

(Exhibit A, p. 9).

(g) Show Host: And actually, if you take these on a preventative basis, you might not ever get a cold at all.

R. Pollack: Right.

(Exhibit B, p. 3)

(h) Show Host: You know, my own grandma just got over pneumonia.

R. Pollack: Hmm.

Show Host: And I'm sending her these so that she can continue to take them, and as some of the people do, take them on a preventative basis.

R. Pollack: Right. Yes.

Show Host: I know that you have women in nursing homes --

R. Pollack: Right.

Show Host: -- and gentlemen in retirement communities who are taking these.

R. Pollack: Yes. And they find them very effective.

(Exhibit B, p. 4).

(i) C. Phillips: We're suggesting to moms, get Cold-Eezer Plus in the house.

Show Host: Um-hum.

C. Phillips: Have it ready, and at the very first hint of a cold, start applying it. But even before then, try to use it as a preventative measure, so that if you know that the child has had an exposure, which is school, they can take one a day --

Show Host: Um-hum.

C. Phillips: -- to try to prevent getting a cold.

Show Host: And you're talking about schools, I mean, everywhere you go, I mean, other children have it, other adults have it, you're just always exposed.

C. Phillips: Always exposed, exactly. You touch things.

Show Host: Um-hum.

C. Phillips: You touch a doorknob and you go up and you touch your nose, you've got the chance to have it.

Show Host: Right.

C. Phillips: So, what we're saying is, point one, if you don't have it in the house, get some in the house so that you have it to use at the very first sign of a cold.

Show Host: Um-hum.

C. Phillips: That's the important thing. This year we're saying, have it around and take one a day. Give your child one before he goes to school, that way, it can possibly prevent that child from getting a cold.

(Exhibit C, p. 2).

(j) C. Phillips: It's also excellent for allergies.

Show Host: Oh, really?

C. Phillips: Absolutely.

(Exhibit C, p. 5)

Internet Advertisements

(k) Don't pass the cold in your family!

Reach for Cold-Eeze with Zigg.

You know what happens when one of the kids comes home from school with a cold . . . it seems everybody in the family gets it. Well, now you can fight back with Cold-Eeze. It's the only zinc lozenge with Zigg (zinc gluconate glycine), the only patented formula clinically proven to reduce the severity and duration of common cold symptoms.

(Exhibit D).

(l) When the Common Cold or Allergies Strike . . . .

  • Sneezing
  • Sore Throat
  • Teary Eyes
  • Runny Nose
  • Stuffy Sinus

. . . Strike Back

with Homeopathic Sugar Free

Cold-Eeze Tablets with ZIGG

(Exhibit E).

Radio Advertisements

(m) You already know that Cold-Eeze lozenges are effective against colds, but have you ever thought of using them against your airborne allergies? The sneezing, sniffling, runny-nose and watery eyes can make you miserable. Try taking Cold-Eeze, the great tasting breakthrough lozenge you've heard so much about, with the zinc-gluconate glycine formula. . . . In fact, Cold Eeze is so effective, consumer testimony and preliminary findings suggest Cold-Eeze may also relieve the discomfort from airborne allergies. Try Cold-Eeze, for relief from the dreadful symptoms of hay fever, mold-spores and other airborne allergies. Homeopathic Cold-Eeze is all natural and non-sedating.

(Exhibit F).

(n) Remember when I told you about passing the cold in your family? You know, the kids bring a cold home from school and pass it onto everybody else. Now with the phenomenal success of Cold-Eeze lozenges, many imposters are trying to copy it! Beware of these fake imitators. Cold-Eeze is the only lozenge clinically proven in two double-blind studies to reduce the duration and severity of the common cold. In fact, Cold Eeze has been so effective against common colds in families that pediatric studies are underway. Try Cold-Eeze to help protect your little ones from the nasty clutches of full-blown colds. So remember the next time one of your kids bring the sniffles home from school, stay away from those fake imitators. There's only one zinc lozenge proven to work on colds. Cold Eeze. Ask for it by name. Clinically proven Cold-Eeze, it really works.

(Exhibit G).

(o) Allergy season is here . . . warm weather, sunshine, flowers . . . it's a terrible time to start sneezing! So attack those symptoms with Cold-Eeze.

(Exhibit H).

5. Through the means described in Paragraph 4, respondent has represented, expressly or by implication, that:

(a) Daily use of Cold Eeze will prevent users from contracting colds.

(b) Use of Cold-Eeze will prevent users from contracting colds.

(c) Use of Cold Eeze will reduce the risk of contracting pneumonia.

(d) Use of Cold Eeze will relieve or reduce the symptoms of hay fever or allergies.

(e) Use of Cold Eeze will reduce the severity of cold symptoms in children.

(f) Daily use of Cold Eeze will prevent children from contracting colds.

6. Through the means described in Paragraph 4, respondent has represented, expressly or by implication, that, it possessed and relied upon a reasonable basis that substantiated the representations set forth in Paragraph 5, at the time the representations were made.

7. In truth and in fact, respondent did not possess and rely upon a reasonable basis that substantiated the representations set forth in Paragraph 5, at the time the representations were made. Therefore, the representation set forth in Paragraph 6 was, and is, false or misleading.

Kids-Eeze

8. Respondent has disseminated or has caused to be disseminated advertisements for Kids-Eeze, including but not limited to the attached Exhibit I that appeared on the Internet at www.quigleyco.com, and Exhibit J, statements on product packaging. These advertisements contain the following statements:

(a) Kids-Eeze Bubble Gum

[clicking on the hyper-link for Kids-Eeze displays the following text:]

Cold-Eeze Bubble Gum Formula

The same clinically proven ZIGG formula and dosage
as regular COLD-EEZE Lozenges!

(Exhibit I).

Product Packaging

(b) [Front]

KIDS-EEZE

COLD-EEZE BUBBLE GUM

REDUCES THE DURATION AND
SEVERITY OF THE COMMON COLD

[Back]

COLD-EEZE HOMEOPATHIC SUGAR-FREE TABLETS
(FOR COLDS AND ALLERGIES)

. . .

CLINICALLY PROVEN
COLD-EEZE WITH ZIGG

(Exhibit J).

9. Through the means described in Paragraph 8, respondent has represented, expressly or by implication, that use of Kids-Eeze will reduce the severity of cold symptoms in children.

10. Through the means described in Paragraph 8, respondent has represented, expressly or by implication, that, it possessed and relied upon a reasonable basis that substantiated the representation set forth in Paragraph 9, at the time the representation was made.

11. In truth and in fact, respondent did not possess and rely upon a reasonable basis that substantiated the representation set forth in Paragraph 9, at the time the representation was made. Therefore, the representation set forth in Paragraph 10 was, and is, false or misleading.

12. The acts and practices of respondent as alleged in this complaint constitute unfair or deceptive acts or practices, and the making of false advertisements, in or affecting commerce in violation of Sections 5(a) and 12 of the Federal Trade Commission Act.

IN WITNESS WHEREOF, the Federal Trade Commission has caused its complaint to be signed by its Secretary and its official seal to be hereto affixed at Washington, D.C. this _______________ day of _______________, A.D., 199__.

By the Commission.

Donald S. Clark
Secretary

ISSUED:

SEAL